What's In Store For Hartford Financial's (HIG) Q4 Results?
Zacks Investment Research | Jan 30, 2020 10:40PM ET
The Hartford Financial Services Group, Inc. (NYSE:HIG) will release fourth-quarter 2019 financial results on Feb 3, after the closing bell.
We expect results to reflect growth in revenues, partly offset by catastrophe losses and rise in expenses.
Now let’s see how the company is placed for fourth-quarter results.
Q4 Expectations
In the fourth quarter, the company’s Property & Casualty segment is likely to have delivered solid numbers on the back of its well-performing Commercial Lines business. This, in turn, might have boosted the revenue base.
The consensus mark for written premiums from Commercial Lines suggests 25% growth from the year-earlier reported figure. Notably, the consensus estimate for core earnings from the Property and Casualty segment suggests a 162.2% rise from the year-earlier number.
The company’s bottom line is likely to have improved on the back of its healthy revenue stream.
The fourth quarter faced catastrophe events. Per the company’s last earnings call, management announced that it incurred a cat loss of $80 million in October including losses from tornadoes in the Dallas area and other wind events.
However, core earnings from the company's Group Benefits might have been affected in the quarter under review. The consensus estimate for core earnings from this segment suggests a 17.6% decline from the year-ago reported figure. This downside might reflect lower net investment income, increased investments in technology, claim management, etc. in the impending quarterly results.
Also, the company is expected to have incurred high expenses due to planned marketing and other growth initiatives in the reported quarter. Elevated expenses might have put a pressure on the margins.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings is pegged at $1.34, reflecting a 71.8% surge from the year-ago quarter.
What the Quantitative Model States
Our proven model does not conclusively predict an earnings beat for Hartford Financial this season. The combination of a positive Zacks Investment Research
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